Trader Talk
- Stocks Lurking Near New Highs Again
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
TRADER TALK RSS FEED
MOST SHARED
- Ritz-Carlton ?Struggling? in the US: President
- Garlic Price Rises Surpass Gold, Stocks in China
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Half of Banks' Losses May Still Be Hidden: IMF Head
- New-Home Sales Jump 6.2% To Highest Level in Over Year
- Oil Price to Average $75.40 in 2010: Poll
- Obama Reiterates Commitment to Boost US-India Ties
- Consumer Mood Improves, But Anxiety Over Personal Finances
- Jobless Claims Below 500,000, Durable Orders Slip
- S&P at 1050-1200 Trading Range Next Year: Strategist
- Treasury On Mortgage Modifications
- Blue Jeans Expected to See Another Green Christmas
- Investors Thankful for Gains This Year
- Thanksgiving & the Markets
- Art Cashin: Caution 'Growing' in Financials, Dividend Moves
- Topless Business Is Taking Off
- 3 Software Stock Picks from Lazard's Senior Analyst
- Schork Oil Outlook: Gas Bulls Pinning Hopes on Mother Nature
- New-Home Sales Jump to Highest Level in Over Year
- Consumer Mood Improves, but Anxiety Over Finances
- Airlines Hit With Penalties for Stranding Passengers
- Jobless Claims Below 500,000, Durable Orders Slip
- US Said It Will Reduce Emissions by 17% by 2020
- Garlic Price Rises Surpass Gold, Stocks in China
- Judge Erases Couple's $525,000 Mortgage Payment
- Black Friday: Can Banks Tap the Frenzy, Too?
- Blue Jeans Expected to See Another Green Christmas
RSS FEED
Text Size 
Reporter
Many traders went to bed last night with futures drifting lower and woke up broadsided by a surprising election in India that has pushed up emerging markets.
Traders noting we are seeing a lot of "reluctant" buyers today; that is, many active traders are still lagging behind the March-April rally, so they are buying the dips today.
Bears will - and should - hone in on the extremely light volume, indicating that buying enthusiasm is not as great as the point moves would indicate.
On the Indian elections, everyone agrees it is good news for the markets BUT:
1) Emerging markets are becoming overbought; emerging markets in general are up 60 percent from March, with India up 86 percent since the October bottom.
2) How much room for real reform is there in India, given the economic slowdown and the glacial pace of bureaucratic change there?
Elsewhere, it is the same "good news but..." story:
1) Good news on stock prices today, BUT the market is not cheap: the S&P is now trading at nearly 17 times 2009 earnings, expensive by historic standards....and 2010 is a long way off.
2) Good news on the retail front from Lowe's [LOW
Loading...
()
] and Dillard's, [DDS
Loading...
()
] as they beat earnings expectations, BUT they did it on cost cutting and inventory control...this works for now, but without topline growth it will be tough to move the stocks forward.
3) Good news on the May NAHB builder survery, as builders are becoming more optimistic, BUT traffic was unchanged from April...with lower prices, lower mortgage rates and all sorts of incentives we aren't getting more people out kicking the tires?
_____________________________
_____________________________
Questions? Comments?
POPULAR TRADER TALK POSTS
- Stocks Lurking Near New Highs Again
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
Data is a real-time snapshot *Data is delayed at least 15 minutes